Malema, Mugabe and 40% Mineral Royalties
There is much noise at present (2011/07) about Julius Malema, his ill-gotten wealth, and his supposed intention to nationalize South Africa’s Mineral Wealth and Farm Lands
Malema is reminiscent of Philip Chiyangwa in Zimbabwe – one of Mugabe’s corruption feeders. Make a lot of noise about expropriation, indigenisation etc. Get paid off by companies large and small not to touch them – a kind of protection money. In Chiyangwa’s case pass on 70% or 95% to Mugabe. The Rio Tinto’s, the Anglo American’s, the De Beers – they are all used to this and they all play this game.
The likes of Malema are very useful to the Mining Giants – they give socialism a very bad name, and they divert away from the crucial question of Royalties towards the relatively unimportant question of company ownership. And everyone knows that a company owned by a Mugabe, a Chiyangwa or a Malema will be run into the ground, will fail to produce.
They also muddle the question of indigenisation with nationalization – Nationalisation is State Ownership, indigenisation is capitalist ownership. Under Mugabe and Malema, there is no nationalisation – only a form of indigenisation which passes ownership – usually free of charge – to the hands of cronies – i.e. crony capitalism.
Guess what is the average Mineral Royalty throughout Africa and indeed throughout the Third World? – 4% (or 2% in the case of Platinum in supposedly socialist/communist Zimbabwe!). Compare this with 22% royalty which is applied by Bafokeng in South Africa… Of course there must be another 2%+ under-the-table secret Royalty for Mugabe’s personal account from South African Implats – into his British, Swiss, Offshore, Malaysian and Chinese Bank Accounts.
The Royalty percentage is the key – not ownership (but also be careful – the mining company or foreign government – e.g. China – must never have ownership of minerals until the point at which they are extracted – the minerals must remain property of the state until that point in time).
What would be the effect of a move from 4% to 40% royalties? Massive and positive – it would bring wealth and development. Oxfam and all their ilk could go and f**k themselves. But only if combined with truly pro-people and non-corrupt cleanly elected governments and presidents. And only if the mineral wealth is evenly spread and not hogged or monopolised by the president and the elite. Thus we need:
1. 40% mineral royalty (and also 40% commodity royalty – see elsewhere my short criticisms of so-called Fair Trade)
2. Fraud Proof Voting Systems (http://cd3wd.com/seev/)
3. Government-to-People (G2P) universal Electronic Payments (http://cd3wd/com/sps/ )
4. As a fourth brick in the firmament, we need also Kind Capitalism and some element of Anti-Privatization, as opposed to Cruel and Exploitive Capitalism, which is prevalent globally in the present day (2011) (https://alexweir1949.wordpress.com)
People like Malema and Mugabe play right into the hands of the West and the Mining and Finance Giants – maybe they even know exactly that they are being used and how they are being used. By diverting the People away from Royalties and towards a Rotten form of Ownership, they are damning the success of any pro-people Change (but they will themselves get very rich in the process). Thus the West effectively yet once again Divides and Rules.
How to counter? Simple – word of mouth, twitter, facebook – since the established media will never ever break the Code of Silence. Spread the word, spread the truth. The Truth is Dangerous, and Shall Set the People Free.
Alex Weir, Gaborone, Botswana, Tuesday 26 July 2011